Equity Fund Tax Details
Following tax rules are applicable, according to time frame, long term is a period of more than one year, whereas short term is a period less than one year:
- If an investor sells his holdings in an equity mutual fund before a year then a flat rate of 15% STCG (short term capital gain) is applicable.
- In case the investor sells his mutual fund units after a year then LTCG (long term capital gain) tax is applicable. As per LTCG tax, gains of over Rs.1 lakh in a financial year are taxed at 10%.